Banks have arranged a debt package of over €700m to support Cinven’s acquisition of a majority stake in Spanish private university UAX, as lenders step up underwriting activity across Europe’s leveraged buyout market, says Bloomberg.

Crédit Agricole, Citi, Mizuho, and UBS are leading the financing, which includes a term loan B of more than €700m and a revolving credit facility. The loan is expected to be syndicated to institutional investors in the new year.

Banks have become increasingly competitive on pricing as they look to regain market share from private credit funds. The pipeline of underwritten LBO financings is growing, following a recovery in dealmaking after years of subdued M&A activity. Recent bank-led packages include a $20bn deal for the buyout of Electronic Arts and a $7.9bn financing for Clayton Dubilier & Rice’s acquisition of Sealed Air.

Cinven may also raise a payment-in-kind facility from other lenders, according to earlier reports. A PIK structure allows interest to accrue over the life of the loan, with repayment due at maturity.

Cinven agreed in late October to partner with UAX founder Jesús Núñez and Mubadala Investment Company to acquire a majority stake in the university. Núñez and the management team reinvested as part of the transaction following a competitive auction process.

Spokespeople for Cinven, Citi, Crédit Agricole, UBS, and Mizuho declined to comment. Representatives of UAX did not respond to requests for comment.

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